Import/Export Price Indexes

U.S. Import and Export Price Indexes News Release

Transmission of material in this release is embargoed until USDL-10-1689
8:30 a.m. (EST) Friday, December 10, 2010
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U.S. IMPORT AND EXPORT PRICE INDEXES - NOVEMBER 2010
U.S. import prices increased 1.3 percent in November, the U.S. Bureau of Labor Statistics reported today,
following a 1.0 percent advance the previous month. Rising prices for fuel and nonfuel imports contributed
to both the November and October increases. Prices for U.S. exports also rose in November, increasing 1.5
percent after advancing 0.8 percent in October.
Imports
All Imports: Import prices advanced 1.3 percent in November following a 1.0 percent increase in October.
The November rise was the largest monthly advance since a 1.5 percent increase in November 2009 and
marked the first time since May and June 2009 that import prices rose by at least 1.0 percent in consecutive
months. The price index for overall imports increased 3.7 percent over the past 12 months, similar to the
year-over-year increases recorded in each of the three previous months.
Fuel Imports: Fuel prices rose 3.7 percent in November after advancing 3.8 percent the previous month. The
November increase was driven by a 4.1 percent rise in petroleum prices, which more than offset a 3.8 percent
drop in natural gas prices. The price index for fuels advanced 6.3 percent for the year ended in November,
led by a 7.4 percent increase in petroleum prices. In contrast, prices for natural gas declined 15.2 percent
over the past year.
All Imports Excluding Fuel: Prices for nonfuel imports rose 0.8 percent following 0.3 percent advances in
each of the three previous months. The November increase was the largest one-month advance for the index
since a 1.1 percent rise in April 2008. Higher prices for nonfuel industrial supplies and materials were the
largest factor for the overall increase in nonfuel prices; however, increasing finished goods and food prices
also contributed to the November advance. Nonfuel import prices increased 3.0 percent for the November
2009-2010 period.
Table A. Percent changes

Exports
All Exports: Export prices increased 1.5 percent in November, the largest monthly advance for the index
since a 1.5 percent rise in July 2008. The November increase in export prices followed advances of 0.8
percent in October, 0.6 percent in September, and 0.8 percent in August. Prices for both agricultural and
nonagricultural exports continued to move higher. The price index for overall exports rose 6.5 percent over
the past year, the largest 12-month advance since a 7.0 percent increase between September 2007 and
September 2008.
Agricultural Exports: Prices for agricultural exports rose 8.0 percent in November, the largest one-month
jump in the index since publication began on a monthly basis in December 1988. Higher prices for corn,
cotton, soybeans, and wheat all contributed towards the increase in agricultural prices in November.
Agricultural prices advanced 21.0 percent for the year ended in November, the largest 12-month rise since
the index increased 25.0 percent for the August 2007-2008 period. Over the past 12 months, cotton prices
rose 81.4 percent, corn prices 43.7 percent, wheat prices 40.1 percent, and soybeans prices 19.3 percent.
All Exports Excluding Agriculture: The price index for nonagricultural exports advanced 0.8 percent, the
largest monthly increase since a 1.3 percent rise in April. Prices for both nonagricultural industrial materials
and finished goods contributed to the November increase. Nonagricultural prices rose 5.1 percent over the
past 12 months.
SELECTED NOVEMBER HIGHLIGHTS
Import Prices
Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices rose 2.6
percent in November after increasing 1.8 percent the previous month. The advances for both months were
driven by increases in unfinished metals prices, up 4.8 percent in November and 3.1 percent in October.
Higher prices for gold, other precious metals, copper, and aluminum were all contributing factors. The
November rise in nonfuel industrial supplies and materials prices was also impacted by a 2.4 percent advance
in chemicals prices.
Finished Goods: Finished goods prices were mostly up in November. The price indexes for automotive
vehicles and consumer goods rose 0.5 percent and 0.3 percent, respectively, while capital goods prices were
unchanged. Capital goods prices excluding computers advanced 0.3 percent, but a 0.9 percent drop in
computer prices offset the increase.
Foods, Feeds, and Beverages: Prices for import foods, feeds, and beverages rose 2.4 percent in November,
led by an 11.2 percent increase in coffee prices and a 6.0 percent advance in prices for bakery and
confectionary products. The increase in coffee prices resumed an upward trend following a 1.8 percent drop
in October. Import coffee prices rose 40.7 percent over the past year.
Imports by Locality of Origin: Import prices from China increased 0.2 percent in November after rising 0.4
percent the previous month. The October advance was the largest monthly jump for the index since a 0.8
percent rise in July 2008. The price index for imports from China rose 0.7 percent over the past year. Prices
of imports from Canada, Mexico, and the European Union also advanced in November, rising 1.4 percent,
0.9 percent, and 0.8 percent, respectively. In contrast, the price index for imports from Japan fell 0.1 percent
in November after increasing 0.4 percent the previous month.
Transportation Services: Import air passenger fares decreased 1.3 percent in November, driven by a 3.2
percent drop in European fares. Despite the decline, overall import air passenger fares rose 12.8 percent over
the past year. Import air freight prices advanced 3.5 percent in November and 11.8 percent over the past 12
months.
Export Prices
Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials
prices rose 1.8 percent following a 1.5 percent advance in October. Higher prices for metals, fuels, and
chemicals led the increases for each month.
Finished Goods: Prices for each of the major finished goods categories increased in November. Capital
goods prices rose 0.3 percent. A 0.7 percent rise in computer prices as well as a 0.2 percent advance in
capital goods prices excluding computers contributed to the overall increase. Prices for consumer goods and
automotive vehicles also rose in November, increasing 0.4 percent and 0.2 percent, respectively.
Transportation Services: Export air passenger fares declined 3.6 percent in November, led by a 13.5
percent drop in European fares. Overall export air passenger fares increased 16.7 percent for the year ended
in November. In contrast, export air freight prices advanced 0.7 percent in November and 4.4 percent over
the past year.
Import and Export Price Index data for December 2010 are scheduled for release on Wednesday,
January 12, 2011 at 8:30 a.m. (EST).

Table 1. U.S. import price indexes and percent changes for selected categories of goods: November 2009 to November 2010

Footnotes(1) Relative importance figures are based on 2008 trade values.

NOTES: Data may be revised in each of the three months after original publication.
Dash = Not available

TECHNICAL NOTE
Import and Export Merchandise and Services Price Indexes -- All indexes use a modified Laspeyres
formula and are not seasonally adjusted. Price indexes are reweighted annually, with a two-year lag in
the weights. Published series use a base year of 2000=100 where possible. More detailed index series
and additional information may be obtained at http://www.bls.gov/mxp, or by calling (202) 691-7101.
Merchandise Goods Classification Systems -- The merchandise price indexes are published using
three classification systems. Items are classified by end use according to the Bureau of Economic
Analysis Classification System, by industry according to the North American Industry Classification
System (NAICS), and by product category according to the Harmonized System (HS). While
classification by end use and product category are self-explanatory, some notes are in order for
classifying items by industry. In the NAICS imports and exports tables, items are classified by output
industry, not input industry. As an example, NAICS import index 326 (plastics and rubber products
manufacturing) include outputs such as manufactured plastic rather than inputs such as petroleum. The
NAICS classification structure also matches the classification system used by the PPI (Producer Price
Index) to produce the NAICS primary products indexes.
Import Price Indexes -- Products have been classified by the Harmonized Tariff Schedule of the United
States Annotated (TSUSA). Import prices are based on U.S. dollar prices paid by the U.S. importer.
The prices are generally either "free on board" (f.o.b.) foreign port or "cost, insurance, and freight"
(c.i.f.) U.S. port transaction prices, depending on the practices of the individual industry. The index for
crude petroleum is calculated from data collected by the U.S. Department of Energy.
Export Price Indexes -- Products have been classified by the Harmonized Schedule B classification
system of the U.S. Bureau of the Census. The prices used are generally either "free alongside ship"
(f.a.s.) factory or "free on board" (f.o.b.) transaction prices, depending on the practices of the individual
industry. Prices used in the grain index, excluding rice, are obtained from the U.S. Department of
Agriculture.
Services Price Indexes -- Starting in September 2008 the Import Air Passenger Fares Indexes represent
changes in the average revenue per passenger received by foreign carriers from U.S. residents and are
calculated from data obtained from an airline consulting service. These data include tickets sold by
travel agencies and travel websites. Tickets sold directly by the airlines are excluded, as are frequent
flyer tickets generally. Starting in January 2008 the Export Air Passenger Fares Indexes represent
changes in the average revenue per passenger received by U.S. carriers from foreign residents and are
calculated from data collected directly from airlines. These data include frequent flyer tickets and those
sold by consolidators. Taxes and fees are included in the Import Air Passenger Fares Index and excluded
from the Export Air Passenger Fares Index. The Air Freight Indexes are calculated from data collected
directly from airlines. These data exclude mail and passenger baggage. The scope of the service being
priced is the movement of freight from airport to airport only, and does not include any ground
transportation or port service. The Air Freight Indexes are presented using two definitions: Balance of
Payments (which represent transactions between U.S. and foreign residents) and International (which
represent transactions inbound to and outbound from the U.S.). Fact sheets specifying detailed
information for each services industry are available at http://www.bls.gov/mxp under "MXP
Publications."
Import Indexes by Locality of Origin -- Prices used in these indexes are a subset of the data collected
for the Import Price Indexes. Beginning with January 2002, the indexes are defined by locality of origin
using a nomenclature based upon the North American Industry Classification System (NAICS).
Nonmanufactured goods are defined as NAICS 11 and 21 and manufactured goods are defined as
NAICS 31-33.
Revision Policy -- To reflect the availability of late reports and corrections by respondents, monthly data
may be revised in each of the three months after original publication. After three months, no further data
revisions take place. So, for example, data released in the January release will be subject to revision in
the releases for February, March, and April.
Uses of the Data -- The primary use of the indexes is to deflate trade statistics, notably the foreign trade
sector of the National Income and Product Accounts constructed by the Department of Commerce.
Other published indexes are useful for general market analysis. For trade in international services,
Balance of Payments indexes are used for deflating National Income and Product Accounts, while
International indexes are more appropriate for market analysis. Merchandise and services indexes also
can be used to study U.S. competitiveness and to compute price elasticities, and the merchandise import
indexes by country or region of origin are useful in terms of trade analysis.
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Additional Information -- More detailed data are available on the Import/Export Price Indexes home
page at (http://www.bls.gov/mxp). Flat Files and the FTP server are available for users requiring access
to either a large volume of time series data or other related documentation. The FTP site can be accessed
at ftp://ftp.bls.gov. For technical assistance in using the BLS Internet site, send e-mail to
(labstat.helpdesk@bls.gov). For Import/Export Price Index data requests, send e-mail to
(mxpinfo@bls.gov).
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